Axfood Sells Minority Stake In Eurocash To Norgesgruppen
Swedish retailer Axfood has announced that it is selling 49% of its shares in Eurocash to Norwegian retail group Norgesgruppen.
The deal was approved by the European Commission, transferring a minority stake of the business for an undisclosed sum. Axfood will continue to be the majority owner.
It was announced that the two retailers were set to acquire Eurocash, the second-largest food retailer on the Swedish-Norwegian border, in January of this year, with the business being consolidated into the Axfood Group.
Speaking about the new agreement, Klas Balkow, president and CEO of Axfood, said, "It is gratifying that we can now finalise the deal and, together with Norgesgruppen, continue the development of cross-border shopping through Eurocash.”
Runar Hollevik, president and CEO of Norgesgruppen, added, “To gain renewed confidence from our customers in the future, we need to strengthen our knowledge about markets outside of our country's border, which this agreement contributes to.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Sign-up for a subscription to ESM: The European Supermarket Magazine.